Gold rises on US election uncertainty, lockdown impact

Gold prices
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Gold prices have seen an increase on Monday as uncertainty looms large over the US election results on Tuesday.

Photo by Pixabay on Pexels.com

Spot gold prices rose 0.26% to $1,883.35 per ounce by 0820 GMT, while U.S. gold futures were up 0.09% at 1,881.50.

“We are seeing something of a resurgence in safe-haven buying,” said Harshal Barot, senior research consultant for South Asia at Metals Focus told Reuters news agency.

The dollar also rose slightly. Democratic candidate Joe Biden has a lead over President Donald Trump in the race to the White House.

Gold is historically seen as a safe haven and hedge against inflation.

Europe is still in the grip of lockdowns because of rising cases of COVID-19 in EU countries. A full national lockdown comes into effect in the UK later on this week.

Gold traders told media outlets that they fear that the lockdowns could lead to deflationary pressures.

For some more perspective about how gold prices react during a pandemic, please click here.

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